30Jul

Pork Network News

ThePorkNetwork.comFriday, July 30, 2010

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In This Issue:

Doane Market Outlook: HogsEditorial: Are We Sending The Right Messages?Business Insights: Pilgrim’s Pride Reports Profit Plunge, Plans To Boost Chicken ProductionAMI Sends Agriculture Secretary Vilsack A Detailed Response To GIPSAIowa Pork Producers Association To Host Regulatory Update ConferenceIndiana Pork Industry Bounces BackKLA: Initiative & Referendum Dangerous To Kansas AgricultureFarm Families Are Minnesota’s Most Important Small BusinessReport: Hog Prices By U.S. & StateVideo: No Snow Days Or Summer Vacation For FarmersWeather: Heat Stresses Crops In South, Showers Soak The Corn BeltDoane Market Outlook: HogsLean hog futures traded higher again on Friday. The futures market was supported by the firm tone in the cash market and rising pork prices. Some contracts posted new highs again today. Further gains were limited by some profit-taking at the end of the week and month. August closed 98 cents higher at $85.83 and October ended 95 cents higher at $79.03.

Market Outlook Resource Center

Featured Article

Geni WrenEditorBovine Veterinarian

Are We Sending The Right Messages?Fifty-seven percent of Americans perceive themselves to be overweight, says the new 2010 Food & Health Survey: Consumer Attitudes Toward Food Safety, Nutrition & Health, commissioned by the International Food Information Council Foundation. More…

AMI Sends Agriculture Secretary Vilsack A Detailed Response To GIPSAAMI President J. Patrick Boyle this week sent Agriculture Secretary Tom Vilsack a detailed response to the Grain Inspection Packers and Stockyards Administration (GIPSA) â€˜Misconception and Explanation’ document issued July 26 when GIPSA announced that it would extend by 90 days the comment deadline for its undue preferences rule.More…

Indiana Pork Industry Bounces BackThe “Year of Pigs” at the 2010 Indiana State Fair comes as Indiana Pork producers rebound from the impact of the global recession and last year’s H1N1 outbreak.More…

KLA: Initiative & Referendum Dangerous To Kansas AgricultureRepublican secretary of state candidate Kris Kobach from Piper announced this week, if elected, he will push for initiative and referendum in Kansas. More…

Farm Families Are Minnesota’s Most Important Small BusinessYou will hear much about the importance of small businesses this summer. Candidates running for public office will talk about the role of small businesses in creating jobs, increasing production and contributing to the economy.More…

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30Jul

Cattle Network News

Nevada Ranchers Oppose Pipeline Deal With Enviros

Friday, July 30

Nevada ranchers concerned about the potential impact on livestock grazing are upset about a deal between the builder of a 680-mile natural gas pipeline and two environmental groups that agreed to drop their opposition to the project stretching from Oregon to Wyoming.

El Paso Corp. agreed earlier this month to contribute $20 million over the next 10 years toward conservation efforts in the pipeline corridor to be overseen by the Idaho-based Western Watersheds Project and Oregon Natural Desert Foundation. Full Story…

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Cattle Market Situation: The Short RunFed cattle prices appear to have bottomed seasonally a bit early this summer. Prices have increased from a low around $91/cwt. in late June to the current level of $94+/cwt. Although it is early to be certain, current prices are consistent with boxed beef prices and there is no obvious reason that current price levels cannot hold into the fall. However, fed prices are unlikely to advance further and may trade in a $93-$95 range until late in the third quarter. Fed prices could advance solidly into the mid to upper $90s by the end of the year. Full Story…

Jolley: NCBA Vs. CBB Vs. State Federations – Can’t We All Just Get Along?The folks at NCBA convened a press conference early this morning. It was called late in the day yesterday.

A bunch of reporters showed up bright and early at 8:00 AM Denver time to listen to Forest Roberts, Scott George and Steve Fogelsong give a calm and reasoned response to CBB’s recent allegations. A few dozen reporters from around the country, unable to attend the quickly called meeting, called in to hear what these three gentlemen had to say. Full Story…

Troubleshooting Cattle Reproductive ProblemsFor a cow-calf operation, good reproductive rates are critical to operational success and profitability. It is generally expected that each breeding age female in the herd produces a healthy calf each year and successfully raises each calf until a planned weaning time. Full Story…

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More ArticlesCattle Breeding: Need For Marker-Assisted EPDs Cattle Market Situation: The Long Run Timely Beef Cattle Tips For July Longer Post-Treatment Intervals Can Equate To Profits Kansas Cattleman Sentenced To 6 Months In Fraud Case

A.I. organizations requested that the American Angus Association provide to the membership the identity of and preliminary test results for Angus bulls tested by Dr. Jon Beever of the Universityof Illinois to determine whether they were carriers or free of the mutation identified for Contractural Arachnodactyly (formerly referred to by the name of “Fawn Calf Syndrome”). Click here to read more.

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Daily Livestock Report Vol. 8, No. 147 / July 30, 2010Market CommentsLean hog futures rose sharply on Thursday on stronggains in cutout values and optimism that a combination of tightersupplies and resurgent demand will sustain hog prices for theremainder of the year. The nearby August contract gained asmuch as 147 points while the October and December futures hitall time contract highs. The charts to the right provide someindication as to what is underpinning the upward move in hogfutures. The pork cutout on Thursday closed at $89.4 /cwt.,$3.87/cwt or 5% higher than the week before and $30.3/cwt or51% higher than during the same time a year ago. The increasein cutout and hog prices is seasonal but it has been further amplifiedby a much tighter supply situation. The spike in prices isreminiscent of 2008 when cutout and prices for individual porkitems hit all time record highs. Daily prices since mid July havefollowed almost exactly the same path as a year ago (see chart)and the market seems to think that the highs for pork pricesmay still be ahead of us. The seasonal increase in prices is beingsupported by tighter hog supplies. The chart below shows a runningseven day total of US daily hog slaughter. On Thursday,the running seven day total stood at 1.949 million head, 7.3%lower than the comparable time frame a year ago. We currentlyestimate hog slaughter on Friday will be around 400,000 headand Saturday at some 50,000 head. If those estimates are correct,that would produce a final hog slaughter level for the weekof 2.015 million, 4.2% lower than a year ago. Even more criticalfor the market, however, is what happens with hog slaughterand hog weights in August. As the bottom chart shows, hogslaughter in 2008 and 2009 rose by more than 100,000 head perweek between the end of July and the end of August. Our currentexpectation is for slaughter to continue to track 2.5% to 3%below year ago levels for the next few weeks but a larger shortfallwill clearly impact a market that already seems to bestretched. The latest cold storage data showed very tight supplies of bellies (-54% vs. 2009), trimmings (-48.6% vs. 2009) and anumber of other items. Belly prices have escalated sharply in recent days as end users appear to have underestimated the marketand likely liquidated inventories too early. Belly demand tends to taper off at the end of August however. As we move into thefall, hams will become an even more important component and will need to carry a larger portion of the carcass. Ham prices arecurrently trading at some very lofty levels and it remains to be seen how retailers and